Credit Freeze vs. Fraud Alert: Which One Do You Need?

A credit freeze blocks lenders from seeing your credit report, so no one can open a new account in your name until you lift it. A fraud alert leaves your report open but tells lenders to confirm your identity before they approve new credit ^[1]. Both are free ^[1]. A freeze lasts until you remove it, and you must place it separately at Equifax, Experian and TransUnion ^[1]. An initial fraud alert lasts one year, and you only need to contact one bureau, which passes it to the other two ^[1]. If your identity has already been stolen, you can get an extended fraud alert that lasts seven years ^[1]. Here is how each one works, how to set them up, and what to do after identity theft.

Credit freeze vs. fraud alert at a glance

Sources: FTC ^[1].

Credit bureaus also sell "credit locks," often bundled into paid plans. The CFPB says a lock is no more effective than a freeze, which is free and guaranteed by law ^[2]. TransUnion describes both as ways to stop lenders from checking your file for a new account, with the lock offered as a feature of monitoring products and the freeze always free ^[3]. If you are paying for a lock only to block new accounts, a freeze does the same job at no cost.

What a credit freeze does

A freeze, also called a security freeze, stops potential new creditors from pulling your credit file ^[2]. Since lenders rarely approve credit without checking your report, a freeze makes it very hard for a thief to open accounts in your name ^[2]. It also blocks you from opening new credit until you lift it ^[1].

A freeze does not change your existing accounts, and it has no effect on your credit scores ^[1][2]. Some parties can still see a frozen file, including companies you already have accounts with, certain government agencies such as child support offices, and credit monitoring services you have hired ^[2]. You can still view your own reports ^[2].

The CFPB notes that the federal free-freeze law does not cover reports pulled for jobs, tenant screening or insurance ^[2]. Experian lists landlords screening new tenants and employers you have authorized among the parties that can still reach a frozen Experian file ^[4]. So a freeze is strongest against new credit accounts, not every kind of background check.

Legal deadlines for a freeze

Federal law sets deadlines for the bureaus ^[2]:

• Placing a freeze: within one business day of an online or phone request, or three business days after a mailed request arrives.
• Confirmation: a written confirmation within five business days of placing it, with instructions for removing it.
• Lifting a freeze: within one hour for an online or phone request, or three business days for a mailed one. Temporary lifts follow the same timing.

In practice, online freezes and lifts often take effect within minutes. TransUnion says changes made online or by phone usually work almost right away ^[3], and Experian says its online changes happen in real time ^[4].

How to freeze and unfreeze at each bureau

You need to freeze all three files, because each bureau keeps its own and a freeze at one is not shared with the others ^[1][4]. Each bureau lets you create a free online account to manage your freeze.

Equifax

• Online: create a free myEquifax account and place the freeze there. You must be 18 to open one ^[5].
• Phone: (888) 298-0045 ^[5].
• Placing, lifting and removing a freeze is free ^[5].

Experian

• Online: sign up for a free Experian account. You can remove a freeze or schedule a thaw (a temporary lift) for set dates, and Experian sends an alert each time your freeze status changes ^[4].
• Phone: 1-888-397-3742 ^[4].
• Mail: requests should include your full name, Social Security number, addresses for the past two years, date of birth, and copies of a government ID and a utility bill or bank statement. Mailed changes can take up to three days after receipt ^[4].

TransUnion

• Online: create a free TransUnion Service Center account, then add, remove or temporarily lift a freeze ^[3]. You can schedule a temporary lift up to 15 days ahead ^[3].
• Phone: 800-916-8800 ^[3].
• Mail: send a written request with your name, address and Social Security number. Mailed requests can take up to three business days to take effect ^[3].

Lifting a freeze when you apply for credit

When you apply for a loan, card, apartment or insurance, you may need to lift the freeze first. The FTC suggests asking the lender which bureau it uses, lifting the freeze only at that one, and putting it back once the check is done ^[1]. A scheduled temporary lift ends on its own, which saves you a step.

Example. You plan to apply for a car loan on Saturday. The dealer tells you its lender pulls TransUnion. On Thursday, you log in to the TransUnion Service Center and set a temporary lift from Friday through the following Wednesday ^[3]. Your Equifax and Experian files stay frozen the whole time. After Wednesday, the TransUnion freeze is back in place without another login.

Keep your account logins for all three bureaus in a safe place. If you lose access, you can still lift or remove a freeze by phone or mail, but mailed requests take longer ^[4][3].

What a fraud alert does

A fraud alert is a flag on your credit file. It tells businesses to check with you, usually by calling, before they open a new account in your name ^[1]. Unlike a freeze, it does not stop anyone from seeing your report ^[1]. The CFPB adds that the alert also covers requests for an extra card or a higher limit on an existing account ^[2].

There are three kinds ^[1]:

1. Initial fraud alert. For anyone who is, or thinks they may be, a victim of identity theft. It lasts one year and you can renew it. Placing one also entitles you to a free report from each bureau ^[1].
2. Extended fraud alert. For people who have had their identity stolen and filed an FTC identity theft report at IdentityTheft.gov or a police report. It lasts seven years. It also removes you from the bureaus' lists for prescreened credit and insurance offers for five years, unless you opt back in ^[1]. Renewing it means sending your report again ^[1]. The CFPB says you may request two free copies of your report when you place one ^[6].
3. Active duty alert. For active duty service members. It lasts one year, can be renewed for the length of a deployment, and takes you off prescreened offer lists for two years ^[1].

How to place a fraud alert

Contact any one bureau. That bureau must notify the other two ^[1]. IdentityTheft.gov lists these contacts ^[7]:

• Experian: experian.com/help or 888-397-3742
• TransUnion: transunion.com/credit-help or 888-909-8872
• Equifax: equifax.com/personal/credit-report-services or 800-685-1111

Each bureau will send a letter confirming the alert ^[7]. Keep your contact phone number current on your reports, since lenders will use it to reach you.

Which one should you use?

• No sign of theft, but you are not shopping for credit soon: a freeze gives the strongest protection, and the FTC says anyone can place one at any time ^[1].
• Your data was in a breach or you suspect misuse: place a freeze, and add an initial fraud alert. The FTC says you can have both at once ^[1].
• Your identity was stolen: file an FTC report, place an extended fraud alert, and freeze all three files ^[7].
• You apply for credit often and do not want to lift freezes: an initial fraud alert is easier to live with, though it offers less protection.

Freezing a child's credit

Parents and guardians can freeze the credit file of a child under 16 for free ^[1]. The freeze stays until you ask the bureaus to remove it ^[1]. The process differs from an adult freeze. TransUnion, for example, requires a mailed request with proof of your authority, such as a birth certificate, and proof of identity for you and the child ^[3]. Equifax uses a Minor Freeze Request form ^[5]. If a bureau has no file on the child, the CFPB says the bureau will create a record just so it can be frozen ^[2].

Recovering from identity theft with IdentityTheft.gov

IdentityTheft.gov is the FTC's site for reporting identity theft. You answer questions about what happened, and it builds a personal recovery plan. If you make an account, it tracks your progress and fills in letters and forms for you ^[8]. Its recovery checklist starts like this ^[7]:

1. Call the companies where fraud happened. Ask their fraud departments to close or freeze the affected accounts, and change your passwords and PINs.
2. Place a fraud alert and get your reports. Contact one bureau for a free one-year alert, then pull your reports and note anything you do not recognize. You can check them weekly for free at AnnualCreditReport.com.
3. Report the theft to the FTC. Use the online form or call 1-877-438-4338. The site creates your FTC Identity Theft Report and recovery plan. If you skip the account, print and save both before you leave the page.

Then work on repairs ^[7]:

• Close fraudulent accounts and ask each business for a letter confirming the account is not yours and has been removed from your report.
• Ask each bureau to block fraudulent information. With an FTC Identity Theft Report, the bureaus must honor a block request, and blocked items will not appear on your report ^[7].
• Add an extended fraud alert or a freeze, or both.
• Handle special cases, such as filing IRS Form 14039 for tax identity theft or checking your ChexSystems report for fraudulent bank accounts ^[7].

The FTC warns that scammers pose as FTC staff. The real FTC will never tell you to move money to "protect it" or to buy gold ^[8].

Frequently asked questions

Does a freeze or alert hurt my credit score? No. Neither one affects your score ^[1][2].

Will a freeze stop fraud on my existing cards? No. It blocks new accounts. Watch your statements and report unknown charges to the card issuer ^[7].

Do I need to renew a freeze? No. It stays until you lift or remove it ^[1][4].

Your next step

Set aside 20 minutes today and freeze your file at all three bureaus online, saving each login in a password manager. If you think your information has already been misused, go to IdentityTheft.gov first, file your report, and follow the recovery plan it gives you. For a full review of what is on your files, see our guide on how to read your credit report and dispute errors.